Local stocks are trading in positive territory at lunchtime, as investors digest an impressive cash profit from one of our big banks and await an expected cash stimulus from the US Federal Reserve.

Westpac (WBC) shares are up 0.7pct to $23.48 after the lender posted a 26pct rise in FY cash profit to $5.9 billion. Shareholders will receive a final dividend of 74c per share. CEO Gail Kelly has told a media briefing the bank has not yet made a decision on interest rates in the wake of the Reserve Bank's decision to lift the official cash rate by 0.25pct to 4.75pct.

Stronger metals trade in London overnight has boosted material stocks, with BHP Billiton (BHP) firmer by 1pct to $42.69 and gold miner Newcrest Mining (NCM) up 2pct to $40.66.

Retail stocks are generally lower in the wake of yesterday's rate hike. Shares in Harvey Norman (HVN) are down 1.5pct to $3.19 while David Jones (DJS) is off 1pct to $4.74.

The Australian dollar has eased slightly against the greenback following data which revealed building approvals slumped 6.6pct in September. At 12pm AEDT the Aussie is worth US99.86c, £0.6226 and €71.15c.